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German furniture industry books minor growth

07.09.2018 − 

The German furniture industry saw a 1% improvement in revenues to €9.051bn in the first six months of this year. This came on the heels of a minor downturn in 2017 as a whole (-0.7% to €17.855bn). The growth rate had been only half as high in the first half of 2017 at 0.5%. According to preliminary figures unveiled by the German Furniture Industry Federation (VDM) published on 27 August, foreign revenues were 2.7% higher at €2.951bn at the end of June. On the other hand, German domestic revenues were barely higher than the previous year’s level with a 0.3% improvement to €6.100bn. The export rate edged 0.5 percentage points higher to 32.6 % because of the weaker performance within Germany.

The growth on the export market was primarily fuelled by key European sales markets and major growth regions outside the EU. Eurozone revenues increased by a larger-than-average sum of 5.7% to €1.789bn compared to the corresponding period in the preceding year. VDM’s managing director Jan Kurth said that subdued growth in Germany was mainly driven by continued warm weather in recent months and lower foot traffic in furniture merchants as a result. Mr Kurth believes that delayed furniture purchases will be caught up in the second half of the year. Based on this assumption, the VDM expects the furniture industry to close out 2018 with a 1% increase in revenues.

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